BAA to cut 700 jobs

BAA is to shed 700 jobs at its three main airports in the next three years to save £45m a year.

Announcing its interim results today, BAA said that it would be cutting back office and management roles at Heathrow, Gatwick and Stansted - but added there would be no cuts in frontline security staff.

BAA posted improved results for the six months to 30 September despite the impact of wildcat strikes at Heathrow and the London bombings.

BAA reported a 9.6% increase in underlying operating profits to £412m.

Retail sales at its seven UK airports including Gatwick and Stansted rose 3.8% to £324m in the first half, which combined with a 2.5% rise in the number of passengers passing through its airports and higher landing fees, this helped overall revenues to rise by 6.4% to £1.17bn.

BAA said today: “Over the next two and a half years, the main focus for change will be at Heathrow, Gatwick and Stansted airports, specifically aimed at delivering an excellent service to all customers consistently and predictably at significantly lower cost. Changes are well underway in Group functions such as human resources, supply chain, capital projects and IT.

“It is anticipated that the whole programme of change will be complete by the end of 2007/08. At that stage the organisation will be leaner, better managed and appropriately positioned to deliver excellent and consistent customer service effectively and efficiently. Supported by further innovation, the group will continue, beyond 2007/08, to deliver improvements in business performance.

“It is expected that, from 2008/09, the Delivering Excellence change programme will deliver annual sustained efficiencies of £45m. Changes focussed on back office and management will result in around 700 fewer jobs. These efficiencies are calculated on the basis of existing traffic and facilities and take no account of any future business, regulatory and market developments.”